On the eve of Drinktec show: how the liquid-food industry is moving north

Varun Beverages has entered the alcoholic beverage segment and will be targeting Indian as well as global markets. In a conversation, Ravi Jaipuria, chairman, Varu Beverages (VBL), told a business daily, “We are diversifying our product offerings and certain African subsidiaries of VBL shall test the market for beer through an exclusive distribution agreement with Carlsberg Breweries A/S for its Carlsberg brand. We are incorporating a wholly-owned subsidiary in Kenya under Varun Beverages for manufacturing, distributing and selling beverages.”

The company aims to expand its horizons into the segment with wine, brandy, gin, rum, vodka and more in India. This stems from the surge in popularity of alcoholic and ready-to-drink (RTD) beverages. A perfect opportunity for Varu Beverages to explore more and gain valuable response at Drinktec India.

As a long-time visitor of the show, Rajinder Jeet Singh Bagga, group technical head, Varun Beverages believes, “I find this show invaluable for industry professionals, offering excellent networking and a hub for learning about the latest technical advancements, from new technologies and processes to connecting with potential customers and vendors.”

The alco-bev updates don’t stop here. Surprisingly, the wine segment has been unable to capture a lot of the young generation’s attention. Companies have found it difficult to grab even with discounted prizes and squeezed margins. These discounts which  were initially started as temporary measures have now become the new normal.

GenZs are more inclined towards RTDs, tequilas, gin and cocktails. Inspired by this consumption pattern, the wine segment is seeing a shift from bottles to wine cans for the younger generation.

Apart from the alcohol segment, unusual shifts have been happening in the beverage and tea segments as well. For example, Coca-Cola saw a 1% decline in volume across the APAC region and India in the month of September. India being the company’s fifth largest market in terms of volume, was affected by rains, soft consumer spending and weak industry performance.

These unfavourable weather conditions are also expected to impact tea production in Darjeeling. When it comes to export, Iran and Iraq were India’s top two export markets this year for tea. Meanwhile, Russia, being India’s active tea export market, saw a decline this year mainly due to the ongoing war with Ukraine and the Kenyan CTC teas entering the Russian market.

At Drinktec India, the beverage, dairy, and liquid food industries will converge to drive growth and innovation. It’s a platform to explore advanced filling technologies, processing, and packaging solutions that empower businesses to stay ahead in a competitive market.